Why the Nation Lost Its Taste for Pizza Hut
Once, the popular pizza chain was the go-to for families and friends to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.
But fewer diners are frequenting the restaurant nowadays, and it is closing 50% of its British locations after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she says “it's fallen out of favor.”
For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now less appealing.
“The manner in which they do their buffet and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”
Since ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its locations, which are being sliced from a large number to just over 60.
The chain, like many others, has also faced its operating costs increase. In April this year, staffing costs jumped due to higher minimum pay and an rise in employer social security payments.
Two diners mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.
According to your choices, Pizza Hut and Domino's costs are similar, notes a culinary author.
Even though Pizza Hut does offer pickup and delivery through external services, it is losing out to big rivals which specialize to this market.
“Another pizza company has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the expert.
But for Chris and Joanne it is worth it to get their evening together delivered to their door.
“We predominantly have meals at home now instead of we eat out,” explains Joanne, reflecting recent statistics that show a decrease in people frequenting quick-service eateries.
During the summer months, informal dining venues saw a notable decrease in customers compared to the year before.
Moreover, one more competitor to pizza from eateries: the supermarket pizza.
An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been offering premium prepared pies for years – some are even promoting pizza-making appliances.
“Lifestyle changes are also having an impact in the popularity of casual eateries,” states the analyst.
The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he continues.
Since people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more dated than premium.
The growth of artisanal pizza places” over the last decade and a half, for example popular brands, has “dramatically shifted the public's perception of what quality pizza is,” says the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who owns a small business based in a county in England says: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
According to a small pizza brand in Bristol, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything fresh.
“There are now slice concepts, artisanal styles, New Haven-style, fermented dough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”
He says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the company.
In recent years, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble rivals. To sustain its costly operations, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.
The leadership of Pizza Hut's international markets said the buyout aimed “to protect our customer service and retain staff where possible”.
The executive stated its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to help employees through the transition.
However with so much money going into running its restaurants, it likely can't afford to invest too much in its delivery service because the sector is “difficult and partnering with existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, cutting its costs by withdrawing from oversaturated towns and city centres could be a smart move to adapt.